Endeavour Reports Test Results from US Shale Plays

Endeavour announced that its drilling program in the United States is recording encouraging test results from joint-interest wells in the Haynesville, Cotton Valley and Marcellus gas plays. The new initiative is part of the company's strategy to establish a growth-oriented portfolio of domestic onshore properties that complement its development and producing assets in the United Kingdom.

"Initial drilling results support our belief that our move into emerging US gas shale and frontier plays will serve as a predictable and sustainable source of reserves and production for our company in the future," said William L. Transier, chairman, chief executive officer and president. "We are especially pleased with excellent test results from our first well in the Haynesville area where the company and our partner have a large acreage position that will allow us to capitalize on opportunities in the region."

Haynesville Play, Louisiana

At the Woodardville Field in Red River and Bienville Parishes, Louisiana, the J-W Operating Company-operated Batchelor 3-1H horizontal Haynesville well tested gas at an initial rate of 21.5 million cubic feet per day (mmcfd) from a 24/64-inch choke at a flowing pressure of 7,732 pounds per square inch. The Batchelor well is a direct east offset to the Indigo Minerals 3-1H horizontal Haynesville completion that has produced more than three billion cubic feet of gas in the past year. Endeavour holds a 50 percent working interest in both the Batchelor and Indigo Minerals wells. The company also has a 41.5 percent interest in the Woodard 10-1H horizontal Haynesville test currently being drilled as a southern offset to the Batchelor and Indigo Minerals wells. In addition, Endeavour has minority interests in three outside-operated Haynesville tests in the Woodardville Field and one outside-operated well in the Grand Cane Field, DeSoto Parish, all of which are at various stages of drilling or completion.

Endeavour holds approximately 13,500 gross acres in the highly productive Louisiana portion of the proven Haynesville shale gas play in a 50/50 joint venture with Cohort Energy with over 200 gross potential future locations.

Lower Cotton Valley Play, East Texas

At the East Willow Springs Field in Gregg County, Texas, the J-W Operating Company-operated Longview North Gas Unit 1H horizontal Cotton Valley Sand well tested gas at an initial rate of 6,144 thousand cubic feet per day (mcfd) from a 28/64-inch choke at a flowing pressure of 2,525 pounds per square inch. Endeavour has a 50 percent working interest in the Longview well with up to six additional horizontal offset locations in the Lower Cotton Valley Taylor Sandstone reservoir. The company also holds deep rights
for the Bossier and Haynesville shale plays in the area which could hold future potential as deeper gas development continues in East Texas.

Marcellus Play, Pennsylvania

At the Daniel Prospect in Cameron County, Pennsylvania, the J-W Operating Company-operated Pardee & Curtin Lumber Co. C-9H horizontal Marcellus completion tested gas at an initial rate of 2,688 thousand cubic feet per day (mcfd) through a 30/64-inch choke at a flowing pressure of 1039 pounds per square inch. The company has a 50 percent working interest in the 9H well and approximately 22,937 gross acres in the Daniel Prospect area. Cohort Energy and Endeavour are currently working on an integrated development plan which would expand existing gathering facilities and enable full development of their joint acreage. Overall, the J-W/END joint venture has an interest in approximately 40,000 gross acres in the Pennsylvania Marcellus Shale play with over 300 gross potential future locations.

"We expect to continue a one rig program in the Haynesville and to drill three more Marcellus wells this year," said Jim Emme, executive vice president, North America. "These efforts should result in significant production and reserve impact in 2010."


Related Companies
 Company: Endeavour International Corporationmore info
 - Endeavour Halts Drilling Ops at East Rochelle (Feb 14)
 - Endeavour: Transocean Semisub Mobilized to Rochelle Field (Jan 7)
 - Endeavour CFO Resigns (Oct 29)

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